Which Fixed Assets Should I Inventory?

Great question! 

When performing a walk-thru to assess a physical inventory that has already taken place, I often run into bar code tags (or tags without bar codes) stuck to just about everything – including doors and walls!

When preparing for a fixed asset inventory, one big question to ask yourself: does it move?  If your fixed asset moves, those are the assets you should be tagging.  The purpose of tagging a fixed asset with a unique identifier (a numbered bar code label) is so that you, or anyone else within your company can easily and quickly identify the asset no matter where it moves – plant A, or plant B for example.  Although it may be obvious to some that you shouldn’t (and sometimes can’t) physically tag a building improvement or the building itself, sometimes, it gets a little confusing.

Other items that may or may not be including in your physical inventory depend on your capitalization policy — but that’s for another day.

Happy hunting for your fixed assets!

One thought on “Which Fixed Assets Should I Inventory?

  1. Pingback: IFRS – Separate Large Fixed Assets Into Individual Assets « Crazy About Your ASSETS | b-l-o-g

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